Tag Archives: recession

Social Media — and what it means to your company

We at Yooter InterActive take pride in the fact that we were one of the first firms in the country to adopt social media as our primary route to online advertising. We have become experts in Twitter, Digg, Facebook and others.

With the record growth of Twitter for example, we have been able to service our clients to extreme levels that other advertising agencies have yet to adopt as a core method of advertising…. but doing well in Twitter is meaningless if not combined with other advertising aspects.

You need a robust blogging platform, you need a robust mobile plan (that includes Twitter), you need a presence on Digg, you need a robust website and you need all these working as a well oiled machine to make it happen.

It’s the online equal to a comprehensive integrated advertising program, and that’s just not one aspect of social media, it’s the whole farm that needs to be thrown at it.

In this recession, social media and SEO will deliver the highest ROI of all marketing forms, if done correctly. Correctly being the keyword.

Advertising During a Recession or Depression

A recession or what some term a depression encompasses a daunting unique challenge. When the unemployment rate started swinging up to quarter century highs it unleashed a new ugly problem.

In short, people that are on the unemployment line don’t buy anything. Granted they do buy some things, food, electric, generally they continue to pay their phone and internet bills so they can continue to e-mail the market with their resumes… but that is about it.

So when they stop buying, your advertising budget hits the floor within months. We have seen companies that had a ad budget of $100 million shoot down to $2 million when comparing 2008 to 2009.

There isn’t much you can do with $2 million using traditional methods… that would be what… 3-4 full page color ads in a magazine plus your ad agency creative fees… bingo there goes your budget, but $2 million for a SEO / SMO campaign would be mind boggling. You could raise havoc on the market place with a budget like that… in fact… you could raise havoc with a budget 10% of that, a $200,000 dollar ad campaign would be an extensive Social Media campaign.. generally complete with oodles of press leaving you with 1.8 million for a free spending “waste your money” print or TV campaign.

In essence the only valid marketing during this economic disaster is online. It’s the only one that your company could afford and measure. Online doesn’t mean forking over your company credit card to Adwords (though that can be used in some instances). Online advertising means blogs, social media and overall an extensive online PR campaign.

It’s hard work, not high cost, big… big diffrence between the two models. It’s generally the types of campaigns that the holding companies shield themselves from because in their eyes “there’s no money in it” … and that’s because of their mindset isn’t to generate an ROI for you.. it’s to generate an ROI for themselves.

You can’t get 20% over spend if the spend is zero.

A blogging campaign means having educated people work the keyboards… it’s not plugging your credit card into adwords and rolling the dice… it’s something that most likely your ad agency didn’t present to you for 2 main reasons. As noted above it’s that there is no “money” in it for them, and second because honestly they don’t know how to do it… and most likely would outsource it to a company like us to do it.

Amazing flip of events that have taken place over the past year… granted most advertising agencies have the contacts…but we have the ROI for the client… this economy will prove what works the most.

Financial Crisis – What you can do about it for advertising

Before you read on, we want to point out that this article cost us nothing other than time. We didn’t put a single half million dollar ad in a print media magazine, nor did we place a massive spend on TV. Using a mixture of putting proper content along with related keywords have provided an outlet for you to see exactly how this works.

You are reading this, you visited our site, you heard our pitch and learned of a social media advertising agency and the benefits of social media optimization and search engine optimization and we paid nothing for you to see it. Now for the article:

We all are painfully aware of what is happening around us. Banks have virtually halted lending to businesses and individuals.

This is a disaster of epic proportions for many companies. This credit crunch is forcing many changes within the workplace to extreme levels.

Companies are not getting simple things such as bridge loans to cover payroll between when work is done, client is invoiced and the check comes in. On a larger scale many companies are not getting the millions they need to retool their factories, and perhaps on the biggest scale, we have entire countries not lending to other countries.

You cannot have a modern economy without banks. Period.

When the .com crash occurred in late 2000 though 2002, the disaster wrecked havoc within the technology industry, along with the terror attacks brought along a very bad day for many of us.

That was a very difficult time….. however… this is much worse financially speaking.

No doubt that many in the Advertising and marketing world are facing some extreme choices. Do we advertise or not? Is there a chance we can gain market share if we push now when our competitor is cutting back?

The answer honestly depends on how you market and advertise.

For a Time Magazine Color Spread ad, you are looking at $511,680 … literally over 1/2 a million dollars, for a single ad.

The definition of cutting back according to Time would be to move from the color spread ad to a color page ad, running at $ 255,840 .. over a quarter million dollars.

A fairly massive Social Media campaign sustained over the course of literally years would be a fraction of the cost of either ad… that single Time Magazine ad will vanish from the newsstands within 4 weeks. The social media campaign will go throughout the entire recession, have a global reach and a growing reach.

A successful social media campaign will deliver decent levels of traffic… and if highly successful.. repeatedly hit those people over and over again.

Meaning that with our social media campaign (this is based on real figures from a recent and ongoing social media campaign) using very little resources and no marketing dollars, we have seen 11,800,894 page views 3,153,477 unique visitors 2,950,772 first time unique visitors and 202,705 multiple “come back” visitors.

Well let’s really do the math.

We paid 8 dollars that year for the domain name.
We paid 5 dollars a month for a simple shared hosting account (that we had to upgrade due to traffic)
We did however put much time into it.

We are going to waive the production costs for this example because the chances are they will cancel each other out when all is said and done.

Total hard costs: $68
Sweat Time : 12 months
Total visitors : 3,153,477
Cost per visitor : ~$0.00002

Time Magazine Ad: $511,680
Sweat Time : 2 month
Total viewers : 19,500,000
Cost per visitor: ~$0.03

~$0.00002 vs ~$0.03

You do the math.

During a nasty recession your options are limited. Most companies do not have the budget in 2009 that they had in 2008. Advertising Agencies and Marketing Agencies are taking it the most behind the auto industry and banking.

The focus moves more towards ROI from branding, and as credit continues to be tight.. that ROI must be delivered at the lowest possible cost.

Basically, you need to do whatever is necessary to keep your company afloat, your job secure and your investment sending back a positive ROI.

That isn’t going to come from 1/2 million dollar ad spend for a single ad.

It’s why we are growing in a recession. The cost is dramatically lower yet the ROI is dramatically higher.

Remember, we were comparing a full year worth of advertising vs a single ad. If anything it’s well worth the risk.. you have very little to lose, yet the upside may be quite dramatic.

Advertising in a Recession means Digital, SEO, and SMO

During a recession, the first thing to go is advertising. It has been like that since the beginning the industrial age, it will continue to be like that in the future. This is not debatable. Though if you dig hard enough you might find one firm (notably P&G) that increases spending during recessions and even during the great depression.

That doesn’t exactly mean that advertising totally halts, it means that massive ad budgets are slimmed down to a fraction of what they were before.

In the last major recession ad budgets took the normal historical hit, but something has changed since the last major recession. It’s now very possible (and in most cases desirable) to run a robust advertising campaign completely online using SEO, SMO and viral campaigns.

Many advertisers are very pleased to see the lower cost of entry, and generally the much higher ROI.

In plain English, you can do more online with a fraction of the cost.

Let’s face it, print media is a dying industry… with every major newspaper showing declines in circulation and even back in 2005 the papers were resorting to shrinking the size of the paper. Americans overall are driving less due to increased gas prices. So your billboards are not getting the ROI you’re paying for, less people are reading the paper… and everyone is online at the expense of TV … literally and of course… the Yellow Pages are being used as door stops… it’s almost not worth mentioning them anymore as a valid marketing strategy.

People are not getting print media, not getting in their cars to see billboards, and not watching TV.. because they are all online searching, playing games, looking up economic reports, basically “hiding online” until the recession is over.

It almost sounds like a storm… and it is of sorts.. when gas exceeded 4 dollars a gallon, people refused to go out.

The last thing however they will cut out is internet access… they depend on it too much as a communication tool… Meaning that the lowest cost advertising method is also the one to help generate a positive ROI.

Search Engine Optimization, Social Media Optimization and digital overall will be the winners in this recession at the expense of TV, Print and Billboards.

It’s quite possible this recession will speed up the changeover to SEO / SMO and Digital faster than expected… as many larger firms are opting to an online only campaign during the recession… for good reason.. it’s the corporate version of what their clients are doing… “hiding online” during a recession.

What a better place to market to them. It’s the only place you will find them at this time.

Media Bistro : Yooter 'they're making a profit' during a recession

Yooter Got some Media Bistro Press

But is there a way to effect positive change for addies? Companies like Converseon, Yooter, Connors and more are doing just that by focusing search marketing and social media outreach. And they’re making a profit. It’s no surprise then that the bigger shops that have lagged in these areas…aren’t. Addies, if you want to find work, stay online and make sure you bark up the right tree. The fruit’s easier to get from a 3 foot tree than a Grey SF.
Full Story

Thanks Media Bistro :)

gas prices + recession = bad advertising days ahead

Generally speaking when the prices of gas hit the roof with people saying it will reach 12-15 dollars a gallon is the exact moment when companies need to reconsider their advertising options.

Let’s face it.. there is an economic disruption out there and gas prices like this will force a general recession.

The problem stems from the fact that the average person is looking at 1 paycheck a month going to Exxon leaving him working on 3 paychecks a month total, that includes food (prices skyrocketing), mortgage payments (another disaster), credit card debt (another mess) and finally to purchase products (the very same products that are increasing in cost due to transportation costs to the store and forcing the individual to pay more to fire up his engine to drive to the store in the first place). It’s just a bad situation overall.

So looking at it this way, people over the next few months or longer will be spending MUCH more time at home, based on current trends they are going to be spending that time on their computer.. not watching TV (if you really want to get down to it.. they will be surfing the web, playing games or watching TV on their computer.. IE: Hulu.Com or Veoh.Com).

The presents a huge opportunity for advertising agencies and marketing agencies that specialize on online marketing, but it’s a disaster for traditional firms… in focus the holding company advertising agencies that have virtually neglected online and just recently have started to focus on it… but sorely lacking the infrastructure needed to complete a social media campaign for example.

In short, InterActive marketing firms are set to grow at the expense of holding companies. During a recession is exactly when firms that are innovative tend to shine. In this case, it’s going to be an interesting competition for the next 12 months.